Canadian Stocks Rise as Wireless Carriers Surge, Miners Rally

Sept. 3 (Bloomberg) -- Canadian stocks rose, for the
highest close in a week, as the nation’s largest wireless
carriers rallied after U.S.-based Verizon Communications Inc.
said it would not enter the market.

Rogers Communications Inc. and Telus Corp. advanced at
least 5.5 percent as telephone stocks surged the most in more
than four years. Teck Resources Ltd. and First Quantum Minerals
Ltd. added more than 1.7 percent as the price of copper climbed
on signs of improving growth in China and the U.S. BlackBerry
Ltd., which is weighing a sale, increased 1 percent after
Microsoft Corp. agreed to acquire Nokia Oyj’s handset business.

The Standard & Poor’s/TSX Composite Index rose 86.60
points, or 0.7 percent, to 12,740.50 at 4 p.m. in Toronto, the
best close since Aug. 26. The gauge earlier climbed as much as
1.4 percent to the highest since March 20. Markets were closed
yesterday for a holiday in Canada.

“The 800-pound gorilla is not coming to Canada,” said
Irwin Michael, portfolio manager with ABC Funds in Toronto. His
firm manages C$800 million ($760 million). “Clearly the fears
of Verizon coming to Canada was there overhanging the market.
Right now it’s a knee-jerk reaction to the surprise.”

Telephone stocks jumped 5.1 percent, the steepest rise
since November 2008, to lead seven of 10 industries in the
benchmark index higher. Trading volume was 18 percent lower than
the 30-day average at this time of the day.

Cell-phone Stocks

Verizon said yesterday it was not going to make an
acquisition in Canada. Shares of the country’s existing wireless
providers had slumped after the U.S. company said in June it was
weighing a bid to buy Wind Mobile, the largest of three new
Ontario-based carriers.

Rogers, Canada’s largest wireless carrier, soared 7.2
percent to C$44.59, the biggest gain since November 2008. Telus
gained 5.5 percent to C$34.50, the most since August 2009. BCE
Inc. added 3.9 percent to C$44.86, its best day in two years.

BlackBerry advanced 1 percent to C$10.75. Microsoft agreed
to buy BlackBerry rival Nokia’s handset business and license its
patents, casting together the lot of two technology companies
trying to stay relevant against more fleet-footed rivals.

The Waterloo, Ontario-based smartphone maker said in August
it has formed a special committee to explore various options for
the company including a possible sale. Both Nokia and BlackBerry
have lost market share to Apple Inc. and devices running Google
Inc.’s Android software.

Teck Resources rose 3.2 percent to C$27.38 and First
Quantum Minerals added 1.7 percent to C$17.85. Copper futures
jumped 2.2 percent, the most in more than three weeks, as signs
of improving economic growth buoyed demand prospects in China
and the U.S., the world’s biggest consumers of the metal.

Manufacturing Growth

Manufacturing in the U.S. expanded more than forecast in
August to the fastest pace since June 2011. Data yesterday
showed China’s manufacturing index increased to a 16-month high
in August, while other gauges showed euro-area factory output
expanded at a faster pace than initially estimated in August.

Eldorado Gold Corp. increased 2.6 percent to C$9.20 and
Goldcorp Inc. gained 1 percent to C$31.42. Gold rose for the
first time in a week, as tension in the Middle East spurred
demand for assets considered safe havens.

Trinidad Drilling Ltd. gained 4.4 percent to C$9.48, the
biggest rise in eight months, after entering into a joint
venture with a wholly-owned subsidiary of Halliburton Co. to
provide drilling rigs in Saudi Arabia and Mexico.

Gabriel Resources Ltd. plunged 18 percent to C$1.39 as a
potential referendum on a mine it is developing in Romania could
delay what would be Europe’s largest gold mine.

The Romanian government proposed a referendum next year on
allowing the project to proceed, following a protest by
thousands of people over the company’s plan to use cyanide at
the Rosia Montana mine. Gabriel had said it could “hopefully”
receive approval by November.